Mumbai: The benchmark Bombay Stock Exchange Sensex dipped below 14,000-point level in intra-day trading on 22 February on heavy selling by funds in auto, sugar and banking stocks but later recovered marginally to close the day at 14,021.31 points.
The Sensex, which had touched 13,865.36 on 14 February, hit a low of 13,978.05 and ended at 14,021.31 points, a loss of 167.68 points.
In similar fashion, the wide-based National Stock Exchange Nifty index touched a low of 4,023.15 points before closing at 4,040 points, a fall of 56.20 points.
Selling pressure gathered momentum as foreign funds re-shuffled their investment portfolios from one segment to another ahead of the union budget.
Market observers said investors were seen settling their positions following end of February contract in the future and option segment.
ACC declined Rs44.5, or 4.4%, to 963.5. Grasim Industries, the country’s third-largest cement maker, fell Rs132, or 5.2%, to 2,415.85. Gujarat Ambuja Cements Ltd., India’s fourth-biggest cement maker, dropped Rs4.4, or 3.4%, to 126.75.
The government last month removed import levies on portland cement to lower manufacturing costs after inflation reached a two-year high.
Overseas investors bought a net Rs4.74 billion ($107 million) worth of stocks on 20 February, according to the latest information on the Securities and Exchange Board of India’s website.